Radio has long been a favorite advertising medium for small business owners, due in part to its ability to reach a local market and broad demographic relatively cheaply. According to the Arbitron ratings for December 2011, nearly three out of four Americans turned on the radio at any given time during the day. With radio contracts commonly sold for 13-week periods, there is opportunity for your spot to play repetitively — a key to a successful advertising campaign. But before you create a radio spot that will reach any audience, understand the laws imposed by the Federal Communications Commission.

Truth-in-Advertising

Like any advertising medium, radio requires the small-business owner to comply with the Truth-in-Advertising Rules set by the Federal Trade Commission. This means your ad must be truthful with evidence to support your claim. Your spot must not deceive or mislead the consumer with false claims, especially when related to health and safety products.

Obscenity is Prohibited

Any kind of profanity or obscenity in a radio spot is in violation of federal law. And lest you think you have the right to say anything you want, guess again. Obscene material is not covered under the First Amendment's right to free speech and cannot be broadcast at any time. The FCC may revoke a radio station's license, impose a fine or issue warnings if such material is broadcast.

Tobacco

If you are a grower or seller of tobacco products, your advertising options are extremely limited. Ever since the federal government enacted the Public Health Cigarette Smoking Act of 1969, you may not advertise on the radio. You can, however, mention cigarettes or other tobacco products if you are advertising anti-smoking products, such as smoking cessation clinics or public service announcements warning against the dangers of smoking.

Alcohol

Laws regarding advertisement of alcoholic products on the radio fall under the jurisdiction of the Federal Alcohol Administration Act. Advertisers may not make false claims about the alcoholic content of their products, false claims about competitor's products or advertise misleading labeling information that may result in consumer deception.

About the Author

Elle Smith has been an advertising professional for more than 25 years. Her work for ABC, CBS and Sony Pictures Television has appeared on radio, on air, in print and outdoors. In addition, Smith has more than 20 years experience in marketing, graphic arts, commercial photography and print production, and is a licensed real estate agent with property management certification in California.